DUSHANBE, July 27, 2010, Asia-Plus — Tax debts of Tajik-Cyprus JV, TajikAzot (fertilizer producer in the southern city of Sarband, Khatlon province), have exceed 4.7 million somoni (equivalent to more than 1 million U.S. dollars) to this day, according to the Tax Committee under the Government of Tajikistan.
The enterprise VAT debts alone now amount to 4.1 million somoni, the source said, noting that the tax debts have been accrued mainly during the years when the enterprise has not been in operation. “The fact that the enterprise stands idle does not mean that it should not pay taxes. “The enterprise should pay, for example, social tax and land tax,” he added
In the meantime, the source at the Ministry of Energy and Industries (MoEI) says TajikAzot has not been in operation for more than two years.
The closed joint-stock company, TajikAzot, is the joint venture launched in cooperation with the Cyprus-based firm, Highrock Holding Limited, in March 2002. The JV was established on the basis of the plant for producing mineral fertilizers that was constructed in Sarband in 1964. Tajikistan owns 20 percent of the shares and Highrock Holding Limited assumes the 80 percent ownership interest in TajikAzot.
As of January 2009, the fertilizer plant has lost US$1.4 million in business due to lack of gas supplies.
